Taiwan’s financial regulator is set to introduce a registration system for cryptocurrency exchanges on November 30, signaling an increase in scrutiny within the sector, according to a report from Taiwanese news outlet Anue Juheng.
The Financial Supervisory Commission (FSC) is taking this proactive step ahead of schedule as part of its regulatory oversight of the rapidly growing crypto market. During a recent inquiry with the Legislative Yuan’s Finance Committee, FSC Chairman Peng Chin-long revealed that 26 exchanges have already received compliance declarations under anti-money laundering (AML) laws, while another 20 to 30 applications are currently being processed.
The FSC plans to ramp up inspections of crypto exchanges, with six firms scheduled for audits in November and December. This follows last year’s inspections of four major operators, which uncovered significant compliance issues, including failures in identity verification and transaction monitoring.
Additionally, the FSC is working on a “Special Law for Crypto Exchange Management,” with public hearings expected in early 2025. This proposed legislation aims to create clearer regulations regarding licensing, consumer protection, and operational standards for exchanges.
The FSC’s cautious strategy highlights the challenges Taiwan faces in navigating the fast-evolving digital asset landscape while ensuring consumer protections and regulatory compliance. Earlier this month, the regulator also proposed new AML regulations for crypto exchanges, requiring providers to submit annual risk assessment reports and establish internal control and audit systems in line with the updated guidelines.
